TENNESSEE PROPERTY AND CASUALTY
EXAM QUESTIONS | COMPREHENSIVE
EXAM PREP, PRACTICE QUESTIONS,
CORRECT ANSWERS AND STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
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,If a fire causes damge to a building the fire is A peril
A. a hazard
B. a peril
C. a risk
D. an exposure
Wearing a seatbelt in a car is an example if which method of Reduce
managing risk?
A. Retain
B. Avoid
C. Reduce
D. Transfer
Tiff leaves her car unlocked when she goes shopping. She Morale
figures her car and its contents are insured, so there is no
reason to worry. Which type of hazard is this an example of?
A. Physical
B. Morale
C. Carless
D. Moral
A flood is an example of Peril
A. a peril
B. a moral hazard
C. a speculative risk
D. a physical hazard
An insurance company incorporated in Wisconsin and Foreign
conducting business in Wisconsin is known as a domestic
company. What kind of company are they considered if they
do business in Minnesota
A. Alien
B. Domestic
C. Foreign
D. Nonadmitted
, All of the following statements about a stock company are stock company is a participating company
true except:
A. stock company pays dividends to stockholders
B. stock company is a participating company
C. stock company is a nonparticipating company
D. stock company has shareholders
What do insurance companies use to help predict how many The law of large numbers
losses will occur in a group or class of individuals?
A. The law of large numbers
B. Standard and Poor's Insurance Rating Service
C. Risk retention group
D. Adverse selection
State requires companies to have a license to sell insurance in a certificate of authority
the state. The license is called:
A. a certificate of authority
B. a reinsurance license
C. a producer's license
D. an admittance license
All of the following are requirements of an insurable pure risk the risk must be catastrophic for the insurance company
EXCEPT:
A. premium must be calculable
B. premium must be affordable
C. teh risk must be catastrophic for the insurance company
D. the loss must have been accidental
Insurers may be classified according to their financial strength. number of clients
This includes all of the following factors except:
A. number of clients
B. loss experience
C. investment performance
D. operating expenses
EXAM QUESTIONS | COMPREHENSIVE
EXAM PREP, PRACTICE QUESTIONS,
CORRECT ANSWERS AND STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,If a fire causes damge to a building the fire is A peril
A. a hazard
B. a peril
C. a risk
D. an exposure
Wearing a seatbelt in a car is an example if which method of Reduce
managing risk?
A. Retain
B. Avoid
C. Reduce
D. Transfer
Tiff leaves her car unlocked when she goes shopping. She Morale
figures her car and its contents are insured, so there is no
reason to worry. Which type of hazard is this an example of?
A. Physical
B. Morale
C. Carless
D. Moral
A flood is an example of Peril
A. a peril
B. a moral hazard
C. a speculative risk
D. a physical hazard
An insurance company incorporated in Wisconsin and Foreign
conducting business in Wisconsin is known as a domestic
company. What kind of company are they considered if they
do business in Minnesota
A. Alien
B. Domestic
C. Foreign
D. Nonadmitted
, All of the following statements about a stock company are stock company is a participating company
true except:
A. stock company pays dividends to stockholders
B. stock company is a participating company
C. stock company is a nonparticipating company
D. stock company has shareholders
What do insurance companies use to help predict how many The law of large numbers
losses will occur in a group or class of individuals?
A. The law of large numbers
B. Standard and Poor's Insurance Rating Service
C. Risk retention group
D. Adverse selection
State requires companies to have a license to sell insurance in a certificate of authority
the state. The license is called:
A. a certificate of authority
B. a reinsurance license
C. a producer's license
D. an admittance license
All of the following are requirements of an insurable pure risk the risk must be catastrophic for the insurance company
EXCEPT:
A. premium must be calculable
B. premium must be affordable
C. teh risk must be catastrophic for the insurance company
D. the loss must have been accidental
Insurers may be classified according to their financial strength. number of clients
This includes all of the following factors except:
A. number of clients
B. loss experience
C. investment performance
D. operating expenses
